Leadership - Doing The Right Thing

I was having lunch with a good friend today and our conversation broached the differences between good people and people who behave poorly. It is a well-known trait that when the environment around people degrades so does human behavior. Likewise, when a company has problems the environment declines and you see difficulties ensue. When the leaders of those companies make poor choices or simply do not "do the right thing" it affects everyone. Many employees are keen to this and feel their leaders lose integrity and credibility by letting the problems make decisions for them. In the end, poor choices lead to losing more than you know and that loss centers on respect.

I have had numerous discussions about leadership with a good friend and colleague who is the Corporate Principal Project Manager at Arkema. He has decades of experience, is tough on expectations and generous to help or advise those with problems. I agree with him about company progress - that it is all about the team. Moreover, that it is our responsibilities as leaders to set examples for others, become mentors and pass forward the the knowledge you gained.

If you are in a leadership position, I encourage you to always do the right thing and set an example. After all, our environment changes and difficulties resolve themselves, leaving you with the reputation you earned with your own actions. The best practice for enduring problematic times is teamwork. That teamwork will depend on respect and trust. This is why leaders need to choose wisely and respect everyone down to the youngest employees. Resist speaking negatively about others and seek a positive way to resolve issues. If you cause someone harm or loss, make good on it no matter what the cost. Repay the loss and learn to apologize.

In a recent administrative position I became aware of one of my direct reports being hurt by a coworker. As a concerned leader I confronted the coworker carefully and with respect alerted this person to the problem. I was so impressed by the quick apology and desire for this person to make a personal apology that I knew the problem was solved. This person earned respect in spite of the problem caused. Never underestimate the power of apology. I have learned to go out of your way to take responsibility for problems even if they are not directly caused by you. This will build your character and others' trust in you.

We will all make mistakes. I like to tell people that I try to learn from my mistakes and I plan "to do a whole lot of more learning". It is not a person's values that make them a better person - it their behavior. For a moment, reflect on how you treat others and if you are a leader to "always do the right thing". If you see a problem occurring at home, at church, a gathering or in the office and you don't think you are a leader, then, you are missing the opportunity to become one.

In parting, I leave you with one of many examples "of doing the right thing" as an inspiration:

19 year old Joey Prusak is the manager of a Dairy Queen in Minnesota.  He was working during the lunch rush when a blind man in line dropped a $20 bill on the floor.  The woman in line next to the blind man quickly picked up the $20 and put it in her purse.  Joey was shocked.  When she got to the counter to order her lunch Joey told her that she would not be served until she returned the $20 to the blind man.  She refused and Joey asked her to leave. She did so only after creating a ruckus.

Not done with being a good person, Joey gave the blind man $20 out of his own pocket.  Equal to two hours of his gross pay.

Now watch the video. Pilot Out.

http://www.youtube.com/watch?feature=player_embedded&v=xQwF3KtXxXA

ENGlobal Corporation: 3Q 2013 Results

HOUSTON, Nov 08, 2013 (GLOBE NEWSWIRE via COMTEX) -- ENGlobal, a leading provider of energy-related engineering and automation services, announced today its financial results for the third quarter ended September 28, 2013.

Third Quarter 2013 Highlights Compared to Third Quarter 2012:

• Breakeven earnings per share, an improvement from a loss per share of $0.83 
• Revenue of $43.3 million, a decrease of 24.7%
• Gross profit margin of 12.0%, an increase from 5.7%
• Overall SG&A decreased from $7.1 million to $5.2 million
• Reduced bank debt from $29.4 million to $1.1 million

ENGlobal reported a net loss of approximately $50 thousand, or $(0.00) per share, from both continuing and discontinued operations for the quarter ended September 28, 2013. This compares to a net loss of approximately $22.3 million, or $(0.83) per share, and a net loss from continuing operations of approximately $18.7 million, or $(0.67) per share, for the quarter ended September 29, 2012. Third quarter 2013 revenues decreased to $43.3 million, 24.7% lower than the $57.5 million for the third quarter of 2012, primarily due to the sale of the Gulf Coast Engineering and In-Plant operations on August 30, 2013.

"ENGlobal has come a long way in fundamentally reshaping its Business over a relatively short period of time," said William A. Coskey, P.E., Founder and Chief Executive Officer of ENGlobal. "ENGlobal's management team has been almost completely reorganized, a move which has proven to be effective in terms of improving margins and reducing expenses. In addition, the Company has sold or discontinued four non-strategic businesses since my return as CEO."

Mr. Coskey, continued. "Through these and other measures, we've been able to significantly reduce dependence on our working capital credit facility and have now returned to being in full compliance with its covenants required by our facility. These actions of divesting certain assets have been important to ENGlobal - both in terms of financial liquidity and for our higher value engineering and automation focus going forward."

The Company's gross profit margin as a percentage of revenue increased to 12.0% in the three months ended September 28, 2013 as compared to 7.1% for the prior year period. The primary reason for this increase is the implementation of our profit improvement plan, which reduced the risk profile of our project mix, reduced variable costs, and improved efficiencies in the Automation segment.

The amount outstanding under the Company's credit facility was $26.8 million at December 29, 2012, $1.1 million at September 28, 2013 and $567 thousand at November 8, 2013. These decreases were primarily due to the release of restricted cash related to the expiration of the Company's Ex-Im Letter of Credit Facility and the liquidation of the working capital of its divested business units.

The following table illustrates the composition of the Company's revenue and profitability, inclusive of discontinued operations, for the three months ended September 28, 2013 and September 29, 2012, respectively (click on link for article and table):

http://www.englobal.com/profiles/investor/ResLibraryView.asp?ResLibraryID=66293&BzID=702&Nav=0&LangID=1&s=0&Category=64


Overall, selling, general and administrative ("SG&A") expenses decreased $3.5 million, or 40.2%, from $8.7 million in the three months in 2012 to $5.2 million for the current quarter. As a percentage of revenue, SG&A remained steady at 12.0% for the three months ended September 28, 2013 when compared to the prior period.

In the three months ended September 29, 2012, the Company recorded goodwill impairment in the amount of $17.0 million of which $14.6 million was attributable to continuing operations.

The Company's Quarterly Report on Form 10-Q for the quarter ended September 28, 2013 will be filed with the Securities and Exchange Commission later today reflecting these results.

Vault Computer: Encrypted Computer Demonstration

Vault Computer has a new video demonstrating their new Encrypted Computer Design. They make use of hardware encryption that protects the entire hard drive and all the data. You can also order a Vault Computer without encryption if you want a fast, high performance computer for personal use, business, industry, engineering or media. For more information read the next article and view this video:



http://www.youtube.com/watch?v=IDb2lJtIyzI

Breakthrough Computer Technology: High Performance and Encryption

How often do we read and hear about Data and Identity Theft these days? Theft of personal, industrial and government data is on the rise and the fastest growing type of crime. Data and information are our most valuable and vulnerable resource tools. Can theft be prevented? Yes – most of it can. In keeping up with new products for Business, Industry and Engineering Computing there is new technology available. Totally encrypted computers and hard drive storage. Vault Computer has expanded into Texas and Louisiana distributing computers in the Houston, Beaumont and Lake Charles areas. These are state of the art high performance computers that are built to last with the latest technology.


There is something very new added to these computers bringing total security into your control – Encryption. As an option you can include hardware encryption to a Vault Computer at a reasonable cost. They use the only SATA hard drive solution available. Vault Computer utilizes 256-bit AES hardware encryption that encrypts the entire hard drive. Data access is only provided with a key. In fact, the computer will not load the operating system without the encryption key. What if the hard drive is removed or stolen? It will be BLANK! This means nobody can see, use or steal your data – it is safe and secure, 100%. This is the exact technology NASA and the rest of the US Government uses to protect their data and is a security industry standard.

Vault Computers with encryption are in use now by Federal Judges, Lawyers, Accountants, Doctors, Industry, Small Business and Private Individuals that want their data safe. No one will ever see your data.




If you do not need the encryption solution, Vault Computer offers the same rock solid platform without encryption if you want a performance computer for industry, business, media or personal use. These computers are extremely fast, ultra quiet and powerful. They come with a four or eight-core processor at 4+GHz per core and 16-32 GB of DRAM. A 1TB hard drive with SATA III (6GB/sec) interface is standard. These computers do not slow down when loaded with resource consuming programs or tasks.

All computers include High Definition Audio, 2/4/5.1/7.1-channel sound with 108dB Signal-to-noise ratio, DVD playback and Dolby Home Theater audio. If you want a Blu-ray DVD player you have that option.

Vault Computers are already in use in the Golden Triangle Area and used in Process Engineering, Automation, Engineering, Industry and Personal Use. Clients report that these computers blow the competition away. For more information and specifications go to:

www.thevaultpc.com

Prices are reasonable and cost thousands less than the nearest equivalent performance from the big box makers. Vault Computer uses higher quality components making them a much better choice for long service life. Whether you want unbreakable security for your data or just the fastest computer available, look into a Vault Computer.

ENGlobal Corporation: What Is InThe Future?

On 30 August we heard that ENGlobal completed its sale of Gulf Coast Engineering and In-Plant Services for about $20 million. The figure announced 16 July was $21.5 million and a $3.5 million promissory note. Offhand it looks like the deal netted ~$5 million less than first announced – the wrong money direction, but closed nevertheless.

ENGlobal’s words earlier were that they were selling “approximately half our business”. So with half the income and revenue the stock stays approximately the same? Does anyone else think the market forces are unusual?

One of the most revealing statements in the July release was, “…through Closing of this transaction, we will have reduced our debt and vendor obligations by approximately $50.0 million." Were any of you aware that debt had reached this magnitude? I don’t believe we ever got that transparency beforehand and then in July, revealing this accumulated debt fact highlighted later, as a ‘plus’ accomplishment?! Think what you want, however, the pattern of disclosure suggests you find out issues later than sooner.

A point I will give Bill Coskey, he is a survivor. This statement from the July release I find resonanting, "The ongoing ENGlobal operations will become strategically focused, well positioned for growth, and essentially free of bank debt.” The key word there was “Essentially”. For those of you that think that ENG will ever be debt free – Nope. Debt was less reduced by the money differences mentioned in the first paragraph plus an additional $10 million Credit Facility was announced in the 30 August release. Debt was reported to be $12.5 million at August 7, 2013.

The new Credit Facility is only a one-year term used for…”working capital purposes, as needed, and will allow the Company additional time to analyze its long-term capital needs.” Please notice the underlined portion which means ‘we’re not done figuring it out yet’. I do not mean to relate this idea as entirely negative; the potential for a positive situation emerging is equally possible.

Measuring the Company

2Q 2013 was a poor showing. Compared to 2Q 2012:
•    $0.06 loss per share, an improvement from a loss per share of $0.37
•    Revenue of $50.6 million, a decrease of 14.5%
•    Gross profit margin as a percentage of revenue of 10.9%, an increase from 8.8%
•    Overall SG&A decreased from $7.9 million to $6.4 million

An improved loss! A loss is a loss, your loss amount may decrease but extended losses lead to bankruptcy. Revenue decreased and now half the company is sold, so watch the revenue number closely in the future. The margins improving are a good sign. SG&A should really decrease more; however, this is the period ending 30 June. Observe the next nine months financials to establish a trend. If you see no significant positive trend then I would be concerned.

From the 2Q release: Mr. Coskey continued. "In effect, this transaction [asset sale] serves as a directional change for ENGlobal. We will have a fresh start and our management team will now have the freedom to pursue strategic opportunities that we believe will ultimately grow the Company. Through the balance of this year, we will firm up the new goals for our Company's future – and look forward to communicating our short- and long-term plans during that time." Well folks how many times have we heard something like this from recent CEO’s? Question: What took away ENGlobal’s management team’s “freedom to pursue strategic opportunities that we believe will ultimately grow the Company” in the first place?

To be honest I do not think I could come up with a better statement under present conditions or would expect much different from the company’s position of being ‘painted in the corner’. I just wouldn’t let myself get into that predicament in the first place. Isn’t being proactive is what management is all about? One thing is for sure when you consider the end of the quote – change is not over and you will have to wait to hear the future plans. Good luck to everyone.

We The People

If you support Democracy you have to support the will of the majority of people – period. Something good and interesting just occurred in Colorado. Legislators bending to the will of others and not the people who voted and hired them were recalled. Stunned, these elected officials are now out of a job. This particular battle occurred in Colorado and fought over firearms and the Second Amendment, however, more importantly is was a battle won using a grass roots campaign, against elected officials who did not respect the voice of those who elected them.

Here is the full article:

Total Recall: Colorado Lawmakers Ousted in Historic Vote

When legislators disregard the voice and will of the people who vote them into office, the people should rightly vote those legislators out of office.  On Tuesday, a historic grassroots effort by voters in Colorado resulted in just that--the recall of Colorado Senate President John Morse (D) and Senator Angela Giron (D).  This week's action represents the first recall of legislators in Colorado history.  Tuesday's vote sent a clear and unmistakable message to elected officials that their primary job is to listen to the people and defend their rights and freedoms, and that they are accountable to their constituents--not the dollars or social engineering agendas of out-of-state anti-gun billionaires.  Simply put, legislators work for the voters, not the other way around!

Recall proceedings began earlier this year, after Sens. Morse and Giron voted for anti-gun legislation that restricted the ability of law-abiding residents to exercise their Second Amendment rights, including their inherent right to self-defense. This effort was driven by concerned Coloradoans, who collected petition signatures, made phone calls, knocked on doors, and worked diligently to turn voters out in this historic effort. And despite massive spending by Michael Bloomberg and the anti-gun elitists, Sens. Morse and Giron are now looking for work.

Voters in Colorado insisted that their voices be heard--and they were.  They stood up for their Second Amendment rights, against formidable anti-gun adversaries, and were victorious.  The National Rifle Association Political Victory Fund (NRA-PVF) is proud to have stood with them and applauds them for sending a clear message that their Second Amendment rights are not for sale. We were pleased that our on-the-ground grassroots efforts were able to supplement those of Colorado citizen activists and send a shot across the bow of the nation's anti-gun elites.

We look forward to working with NRA-PVF "A" rated and endorsed Bernie Herpin (R) from Colorado Springs and NRA-PVF "AQ" rated and endorsed George Rivera (R) from Pueblo in the Colorado State Senate.

http://www.nraila.org/legislation/state-legislation/2013/9/total-recall-colorado-lawmakers-ousted-in-historic-vote.aspx

A video can be seen here.

Conclusions

Americans may sit on their duffs and complain for a while, however, when we’ve had enough we take action. We unite and act. That message was just sent to those powerful and rich politicians trying to ignore our voices and constitutional rights. The rights this country was founded and then built upon. These former Colorado legislators were being influenced by Joe Biden, President Obama and Mayor Bloomberg who gave money to fight the efforts to remove them from office. Do not expect this event to make the media headlines as it should due to biased media.

See and earlier post covering media bias:

http://t38pilot8202.blogspot.com/2012/12/san-antonio-theater-shooting-gun.html

A recent example of this media bias was the 2 million strong biker ride in to Washington DC by motorcycle enthusiasts on 9/11. This was in response to an attempt at a 1 million Muslims gathering for the “American Muslim March Against Fear”. It had been originally touted as the “Million Muslim March.” The Muslims got some coverage but the motorcycle riders got next to nothing. If fact, the Muslims got a permit to gather and parade but the motorcyclists promoting American Constitutional Rights did not. At the day's close the motorcyclists numbered 880,000+, but less than 30 of the Muslims showed up.

In the end it is up to you as an individual to speak up, unite and act when your leaders no longer listen. Yes, things will change with time – they always do. However, that does not mean we have to give up Democracy and fundamental values this country was built upon. Those values are what made this country strong in the first place. Those values are what give us our freedom. Freedom allows us to bring quality to our children and families. It guarantees our right to the pursuit happiness.

ENGlobal Corporation: Previous Segment Sale Final, New Credit Facility

ENGlobal Finalizes Sale of Gulf Coast Operations
Enters Into New $10 Million Credit Facility

HOUSTON, Aug. 30, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, announced today that it successfully completed the sale of its Gulf Coast engineering and in-plant operations to Furmanite America, Inc. ("FAI"), a subsidiary of Furmanite Corporation (NYSE:FRM) ("Furmanite"). The total consideration of the transaction to ENGlobal was approximately $20 million, consisting primarily of cash funded at closing. The Company will use the cash proceeds from the transaction to repay its outstanding debt under its existing credit facility and for working capital purposes. Further terms of the transaction were not disclosed.

ENGlobal will retain its Engineering operations and the entirety of its Automation operations located in Houston, TX, Tulsa, OK, Mobile, AL, Denver, CO, and Chicago, IL, which perform project execution services primarily to the energy industry. The Company previously announced that it intended to concentrate on its core Engineering and Automation segments in these markets and target specific engineered solutions, utilizing both in-house and third party intellectual property.

ENGlobal also announced that it has entered into a one year, $10 million credit facility with its lender, which will be used for working capital purposes, as needed, and will allow the Company additional time to analyze its long-term capital needs. 

"The completion of this transaction with Furmanite is a significant milestone for ENGlobal," said Mr. William A. Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "Now, as a stronger company, we plan to return our attention to strategic growth. I would like to personally thank all of our employees, especially those in our Gulf Coast operations, for their patience throughout this process and commend the transition team for their efforts."

Mr. Coskey, continued. "I have great respect for Furmanite's management team and have no doubt that our Gulf Coast employees are in good hands. We look forward to working with Furmanite on future projects."

ENGlobal Corporation: 2Q 2013 Results

HOUSTON, Aug. 9, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, announced today its financial results for the second quarter ended June 29, 2013.

Second Quarter 2013 Highlights Compared to Second Quarter 2012:

• $0.06 loss per share, an improvement from a loss per share of $0.37
• Revenue of $50.6 million, a decrease of 14.5%
• Gross profit margin as a percentage of revenue of 10.9%, an increase from 8.8%
• Overall SG&A decreased from $7.9 million to $6.4 million

ENGlobal reported a net loss of approximately $1.7 million, or $(0.06) per share, from both continuing and discontinued operations for the quarter ended June 29, 2013. This compares to a net loss of approximately $9.8 million, or $(0.37) per share, and a net loss from continuing operations of approximately $8.3 million, or $(0.31) per share, for the quarter ended June 30, 2012. Second quarter 2013 revenues decreased to $50.6 million, 14.5% lower than the $59.2 million for the second quarter of 2012, primarily due to lower engineering, procurement and construction (EPC) project revenues in the Engineering and Construction segment and the conclusion of several projects in the fabrication division of the Automation segment in 2012.

"The impending divestiture of our Gulf Coast engineering and in-plant operations to Furmanite will result in a major transformation of our business," said William A. Coskey, P.E., Founder and Chief Executive Officer of ENGlobal. "The transaction is expected to close by the end of August, and the corporate services transition is expected to be substantially complete by the end of 2013."

Mr. Coskey continued. "In effect, this transaction serves as a directional change for ENGlobal. We will have a fresh start and our management team will now have the freedom to pursue strategic opportunities that we believe will ultimately grow the Company. Through the balance of this year, we will firm up the new goals for our Company's future – and look forward to communicating our short- and long-term plans during that time."

The Company's gross profit margin as a percentage of revenue increased to 10.9% in the three months ended June 29, 2013 as compared to 8.8% for the three months ended June 30, 2012.  The primary reason for this increase is reduced variable costs and improved efficiencies in the Automation segment.

The following table illustrates the composition of the Company's revenue and profitability for the three months ended June 29, 2013 and June 30, 2012, respectively [see table within the link below]:

http://www.b2i.us/profiles/investor/ResLibraryView.asp?ResLibraryID=64502&BzID=702&g=541&Nav=0&LangID=1&s=30

Overall, selling, general and administrative ("SG&A") expenses decreased $1.5 million, or 19%, from $7.9 million in the three months ended June 30, 2012 to $6.4 million for the three months ended June 29, 2013. As a percentage of revenue, SG&A decreased to 12.6% for the three months ended June 29, 2013, from 13.3% for the comparable period in 2012.

The amount outstanding under the Company's credit facility was $26.8 million at December 29, 2012, $14.7 million at June 29, 2013 and $12.5 million at August 7, 2013. These decreases were primarily due to the release of restricted cash related to the expiration of the Company's Ex-Im Letter of Credit Facility and the liquidation of the working capital of its divested business units.

On July 5, 2013, the Company entered into a definitive agreement under which its Gulf Coast engineering and in-plant operations will be sold to Furmanite America, Inc., a subsidiary of Furmanite Corporation (NYSE:FRM). The total value of the transaction to ENGlobal is expected to be approximately $21.5 million, consisting primarily of cash at closing and a $3.5 million promissory note issued with a Furmanite Corporation guarantee. ENGlobal intends to use the net proceeds from this transaction to repay its outstanding debt and for working capital purposes. The transaction has been approved by the boards of directors for both companies, and is expected to close on or around August 30, 2013, subject to lender approval and the completion of customary conditions.

The Company's Quarterly Report on Form 10-Q for the quarter ended June 29, 2013 will be filed with the Securities and Exchange Commission later today reflecting these results.

ENGlobal Corporation: Awarded ~$5M Contract

ENGlobal Awarded Project from Utica East Ohio Midstream

 Houston, TX, July 23, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ: ENG), a leading provider of energy-related engineering and automation services, announced today that it has been awarded a project from Utica East Ohio Midstream LLC ("UEO"), to provide engineering and procurement support services at its Leesville cryogenic processing plant.  The value of the award to ENGlobal is approximately $5.0 million.

ENGlobal's scope consists of engineering and procurement support services for a control room, condensate stabilization unit, site grading, and design integration services for a 200 million standard cubic feet per day (MMSCFD) cryogenic unit.  The Company expects to begin work on the project immediately with project completion anticipated in the second quarter of 2014.

UEO is a joint venture between M3 Ohio Gathering LLC, Access Midstream Partners, L.P., and EV Energy Partners, L.P. and is one of the largest integrated midstream service complexes in eastern Ohio ("UEO Buckeye").  The UEO Buckeye complex currently includes 800 million cubic feet per day of natural gas processing and associated NGL fractionation, loading and terminal facilities.  The 200 million cubic feet per day Leesville facility is the second processing plant in UEO Buckeye complex, which will recover natural gas liquids (NGLs) in the liquids-rich Utica shale play, and has a design capacity of up to 600 million cubic feet per day.

"ENGlobal is pleased to be a part of building this major gas processing facility in the Utica shale development," said William A. Coskey, P.E., ENGlobal's President and Chief Executive Officer. "Having been selected for both the engineering and procurement work, ENGlobal is able to provide a greater level of responsibility throughout the scope of the project.  We would like to thank UEO for their confidence in our capabilities."

ENGlobal Corporation: Sells Engineering and In-Plant Operations to Furmanite

ENGlobal Announces Agreement to Sell Its Gulf Coast Engineering and In-Plant Operations to Furmanite

HOUSTON, July 16, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, announced today that it has signed a definitive agreement under which ENGlobal's Gulf Coast engineering and in-plant operations will be sold to Furmanite America, Inc. ("FAI"), a subsidiary of Furmanite Corporation (NYSE:FRM). The total value of the transaction to ENGlobal is expected to be approximately $21.5 million, consisting primarily of cash at closing and a $3.5 million promissory note issued with a parent company guarantee.

ENGlobal's Gulf Coast engineering operations consist of its Beaumont, TX, Baton Rouge, LA, Lake Charles, LA, Deer Park, TX, and Freeport, TX offices, which primarily perform work for downstream clients across the region. The Company will retain its Engineering operations and the entirety of its Automation operations located in Houston, TX, Tulsa, OK, Mobile, AL, Denver, CO, and Chicago, IL, which primarily perform midstream and downstream related projects.

ENGlobal intends to use the net proceeds from this transaction to repay its outstanding debt. The transaction has been approved by the boards of directors for both companies, and is expected to close within 60 days, subject to lender approval and the completion of customary conditions. In addition, the companies have agreed to facilitate a smooth transition of corporate service functions and to support each company's business development efforts. Under terms of the agreement, approximately 900 employees will transfer from ENGlobal to Furmanite.

"The transaction with Furmanite, representing approximately half of our business, has stood out among all alternatives as making the most sense for our employees, clients and shareholders," said William A. Coskey, P.E., Founder, Chairman and Chief Executive Officer. "The ongoing ENGlobal operations will become strategically focused, well positioned for growth, and essentially free of bank debt. We will continue to build on the expertise of our heritage Engineering and Automation segments and also expect to target specific engineered solutions, utilizing both in-house and third party intellectual property."

Mr. Coskey continued, "We are pleased to announce that throughout our turnaround plan over the last year – and through Closing of this transaction, we will have reduced our debt and vendor obligations by approximately $50.0 million. The resulting revitalized Company with 500 employees will become the foundation from which to rebuild ENGlobal."

The Company expects that this transaction will substantially complete its review of strategic alternatives. In October 2012, ENGlobal announced its plan to explore strategic alternative options, which included raising capital, selling a portion of the Company's assets, and the possible sale or merger of ENGlobal, among other alternatives. Since that time, the Company discontinued its Electrical Services division and divested its Land/Right of Way and Midstream Inspection divisions.

Summer and Fall News and Events 2013

Rev 6.0

ENGlobal Announces Expansion of Its Department of Defense Contract

HOUSTON, Nov. 4, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, today announced that its wholly-owned subsidiary, ENGlobal Government Services, Inc. based in Tulsa, Oklahoma, has been awarded an additional delivery order on one of its existing multi-year contracts from the U.S. Department of Defense. The value of the award to ENGlobal from the Space and Naval Warfare Systems Center (SSC) Atlantic is estimated to be approximately $7.0 million.

As previously reported in July 2012, ENGlobal was awarded an indefinite-delivery/indefinite-quantity (ID/IQ), cost-plus/fixed-fee contract for technical and maintenance services for automated tank gauging and automated fuel handling equipment (AFHE). Under the scope of the new delivery order, ENGlobal expects to perform engineering and design services to maintain, repair, and/or rebuild the fuel handling equipment of the Naval Supply Fleet Logistics Command Center in Pearl Harbor, Hawaii.

"We are successfully being awarded a steady mix of business, including this delivery order by the U.S. Department of Defense," said Mr. William A. Coskey, P.E., Chairman and Chief Executive Officer of ENGlobal. "The Company is focused on improving the profit mix of its operations and maintaining overhead discipline. We are excited about our growth potential after recent divestitures, together with select project opportunities. We believe this strategy, plus our strong financial condition, puts us in a good competitive position going forward."

Commentary and Notes: We will soon see the 3Q for ENG and how the above comments relate. This is a small but a positive contract addition.


-----------------------------

Furmanite Reports 3Q with a profit after Acquisition of ENGlobal Assets

Revenues for the three months ended September 30, 2013 were $99.5 million, an increase of $23.9 million, or 31.7%, over the $75.6 million reported for the three months ended September 30, 2012. Operating income for the three months ended September 30, 2013 was $4.4 million compared to an operating loss of $0.7 million for the three months ended September 30, 2012, an increase of $5.2 million. Net income for the 2013 third quarter was $2.1 million, or $0.06 per diluted share.

-----------------------------

ENGlobal Announces First Universal Master Control Station(TM) Installation Patent-Pending, Vendor-Independent Subsea Control System 

HOUSTON, Oct 15, 2013 (GLOBE NEWSWIRE via COMTEX) -- ENGlobal Corporation, a leading provider of energy-related engineering and automation services, announced today that its first patent-pending Universal Master Control Station(TM) (UMCS(TM)) has been successfully installed on an offshore platform in the Gulf of Mexico for a major international oil and gas company. The UMCS(TM) provides a standardized interface between industry available subsea production systems and topsides production facilities.

"We are pleased to reach this significant milestone and look forward to pending deployments of the UMCS(TM) technology," said William A. Coskey, P.E., ENGlobal's Chief Executive Officer. "ENGlobal intends to utilize the UMCS(TM) platform as the basis for further subsea controls integration projects, including hydraulic power and electrical systems. As a Subsea Controls Integrator (SCI), we offer added value to our customers by utilizing our execution skills to manage technically complex subsea projects."

The UMCS(TM) is a control station used primarily to monitor and control subsea production equipment, with features including:

-- Integration of multiple subsea equipment vendors within a single master control station;

-- Operable in new or existing subsea production/injection areas;

-- Scalable object-based programming software utilizing off-the-shelf commercial hardware;

-- Standardized interface to subsea communication units, distributed control systems, electrical power units, and hydraulic power units; and

-- Easily configurable operational graphics, security protection, interlocks, and shutdown sequences tailored via the UMCS Client Configuration Tool(TM).

As previously reported, the UMCS(TM) has been in development since 2006, with coordination between ENGlobal, its client and leading providers of subsea equipment and services. The Company acquired the subsea control system technology - and initiated its U.S. patent process - in 2010 in order to expand into the active offshore upstream market.


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To all the new Furmanite employees from ENGlobal. I wish all of you the best of luck and believe you are in good hands. Thanks for reading and I hope to post some positive trends for your company as they become available.

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Here is a labor lawsuit filed against ENGlobal:

http://englobalovertimecase.com/uploads/Doc._1_-_Complaint_ENGlobal.pdf

I am familiar with the attorney filing the suit. My advice is to question both sides of the case. Amplification is endemic in the legal world.

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8-K Filed 22-Jul-2013

Item 8.01 Other Events
Notice from The NASDAQ Listing Qualifications Department that ENGlobal Corporation has regained compliance with NASDAQ Marketplace Listing Rule 5550(a)(2)

As previously reported, on October 3, 2012, ENGlobal Corporation ("the Registrant") received a letter from The NASDAQ Listing Qualifications Department ("NASDAQ") notifying the Registrant that for the 30 consecutive trading days preceding the date of the letter, the bid price of the Registrant's common stock had closed below the $1.00 per share minimum required for continued inclusion on the NASDAQ Global Market pursuant to NASDAQ Marketplace Listing Rule 5450(a)(1), (the "October Letter").

On April 16, 2013, the NASDAQ approved the Registrant's application to list its common stock on the Capital Market and was granted an additional 180 calendar day period, or until September 30, 2013, to regain compliance.

On July 19, 2013, the Registrant received a letter from NASDAQ notifying the Registrant that since the closing bid price of the Registrant's common stock has been at $1.00 per share or greater for at least 10 consecutive days since the date of the October Letter, the Registrant has regained compliance with NASDAQ Marketplace Listing Rule 5550(a)(2) and NASDAQ now considers the matter closed.

-------------------------

Judging by the way the stock has surged in volume on Thursday 7/11 and the price spiked to $1.54 I would say an announcement is forthcoming.

Looks like the news released today, 7/16, was a partial sale of ENG assets to Furmanite America. Opportunities will be present for all. Watch how the leaders react.

Good luck to everyone.

ENGlobal Corporation: 8K - Letters of Credit Filing

http://www.sec.gov/Archives/edgar/data/933738/000117184313002557/f8k_062013.htm


Item 8.01     Other Events


As previously reported, the Registrant’s lenders issued approximately $12.8 million in letters of credit to a client in July 2011 on the Company’s behalf to support its performance on an international Automation project (“Performance Letters of Credit”).  These Performance Letters of Credit were issued outside of the Registrant’s working capital facility with its current senior lender.


On June 17, 2013, its Performance Letters of Credit were allowed to expire.  The Registrant has proposed an alternative option to modify terms of future retention amounts to replace the Performance Letters of Credit, which is currently under consideration.


As a result, the Registrant expects its project-specific credit agreement will be terminated and approximately $7.1 million in collateral will be released to its senior lender.

Editor's Note: These Performance Letters of Credit were for the Caspian Sea Project. 

ENGlobal Corporation: 4Q and 1Q Comments

Rev. 1.1

The news has recently been quiet for ENGlobal and most everyone has been wondering what will happen next? The last credit facility expired on 30 April and we have had no news on that either. I would think some processes have already started and an event is waiting to happen.

Let’s review some of the last financial reports. For the 4Q and FY 2012 ENGlobal reported a loss from continuing operations of ($1.12). However, that wasn’t the end of the story. When you read the SEC filing the NET loss was ($1.25). An additional loss of (.13) came in from Discontinued Operations; this was a bullet point that didn’t make lead headlines.

This additional loss does not look unusual until you compare it to 1Q 2013. ENGlobal reported a profit of $.07/share. This number looked great until you see that they also reported a loss of $.04/share from Continuing Operations. Losing from Continuing Operations is bad and you are not going to get out of the hole performing like that.

In turn, this begs the question, why the profit in 1Q and what offset the loss from continuing operations? Looking into the SEC filing the answer was again Discontinued Operations (DO) but this time with a profit! So… why a loss from DO in 4Q 2012 and profit from DO in 1Q 2013? Should not the two DOs have occurred together and leveled at a ($.02) in 4Q? Those are good questions. CFO’s do have some flexibility and that is all that I can comment on as to why it happened, but one would have to think by the time they issued 4Q 2012 results they would also have known the profitable impact from the sale of DO.  Subsequently, where is the transparency and full-disclosure?  Must be a GAAP thing!

The salient issue, however, is the ongoing loss from continuing operations. This is a Black and Red issue that PNC or investment backers will not tolerate. Many months ago I proposed that ENG may be sold. Recently we saw a spike up in the stock. I think this may be an indicator of something happening. Be wise that this does not necessarily mean a sale or an associated price, however, a calculated possibility. There could be a myriad of possibilities including a stock swap. Did anyone notice that there has been no announcement of an Annual Meeting or the associated SEC filings? Logic would dictate not to expend money and energy on a moot scenario. Nevertheless, ENGlobal cannot continue to operate at loss.

Good luck to everyone.

ENGlobal Corporation: Recognized with Safety Awards

Houston, Texas, May 23, 2013 (GLOBE NEWSWIRE) -- ENGlobal (NASDAQ: ENG), a leading provider of energy-related engineering and automation services, announced today that it was awarded the following safety performance awards:

1.      "2012 Best of the Best Level of Achievement for Safety Excellence" at the 26th Annual Houston Business Roundtable (HBR) awards banquet held on May 17, 2013 in Galveston, Texas.  ENGlobal was nominated by a client for its OSHA Voluntary Protection Program (VPP) performance at the facility. In addition, the event recognized many client owners that support this prestigious annual event.

2.      At the 3rd Annual 2012 Contractor Safety Forum on May 2, 2013 in The Woodlands, Texas, ENGlobal was awarded a "Safety Excellence Award," which recognizes contractor companies that have achieved outstanding safety performance.

3.      Finally, ENGlobal received the "2012 Star of Excellence" Award, which was presented during the 2013 Voluntary Protection Program (VPP) Conference in San Antonio, Texas on May 8, 2013.  The "Stars Program" level is awarded to worksites if certain safety metrics are at least 90 percent below the Bureau of Labor Statistics national industry averages.

"We are extremely pleased to receive these awards, which recognize ENGlobal for delivering exemplary safety performance within our onsite and offsite locations," said William A. Coskey, P.E., ENGlobal's President and Chief Executive Officer.  "Our Health, Safety, and Environmental (HSE) department continues to prioritize health and safety in the workplace as well as at home.  I would like to recognize our employees company-wide for their hard work and congratulate each of them on winning these awards."

Editor's note: ENGlobal always did have a great safety record.

ENGlobal Corporation: 1Q 2013 Report

ENGlobal Reports First Quarter 2013 Results

HOUSTON, May 14, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, announced today its financial results for the first quarter ended March 30, 2013.

First Quarter 2013 Highlights Compared to First Quarter 2012:

$0.07 earnings per share, an increase from a loss per share of $0.01
Revenue of $49.8 million, a decrease of 15.9%
Gross profit margin as a percentage of revenue of 11.7%, an increase from 11.1%
Corporate SG&A decreased from $4.0 million to $3.4 million
ENGlobal reported net income of approximately $1.9 million, or $0.07 per share, and a net loss from continuing operations of approximately $1.0 million, or $0.04 per share for the quarter ended March 30, 2013.  This compares to a net loss of approximately $0.1 million, or $0.01 per share, and a net loss from continuing operations of approximately $0.9 million, or $0.03 per share, for the quarter ended March 31, 2012. First quarter 2013 revenues decreased to $49.8 million, 15.9% lower than the $59.2 million for the first quarter of fiscal year 2012, primarily due to lower engineering, procurement and construction (EPC) project revenues in the Engineering and Construction segment and the conclusion of several projects in the fabrication division of the Automation segment in 2012.

Although the Company's borrowings under our credit facility have been reduced, interest expense, fees, and consulting services associated with the credit facility were approximately $520,000 higher during the first quarter of 2013 when compared to the first quarter of 2012.

Management's Assessment

"We are pleased to see the anticipated financial impact of the strategic divesture of the land and inspection divisions in late 2012," said William A. Coskey, P.E., ENGlobal's Chairman and Chief Executive Officer. "We continue to evaluate alternatives for improving our financial condition and further paying down debt. Operationally, we are making good progress on increasing profit margins under both new and existing master service agreements.  It is important to note that we have been successful in landing several significant contracts from new clients in various geographical regions as well negotiating contract extensions from a number of long-term clients, which indicates the viability of our business development efforts."

Mark A. Hess, ENGlobal's Chief Financial Officer, added, "We have been focused on our core engineering and automation businesses since the first of the year, greatly reducing exposure to EPC projects. As of March 30, 2013, project backlog was approximately $205 million, which was roughly unchanged from December 29, 2012. During the first quarter, we produced cash from operations that was used to pay down our credit facility."

The Company's gross profit margin as a percentage of revenue increased to 11.7% in the three months ended March 30, 2013 as compared to 11.1% for the three months ended March 31, 2012. The primary reason for this increase is reduced variable costs and improved efficiencies in the

Automation segment.

Overall, selling, general and administrative ("SG&A") expenses decreased $0.9 million, or 12.8%, from $7.1 million in the three months ended March 31, 2012 to $6.2 million for the three months ended March 30, 2013. As a percentage of revenue, SG&A increased to 12.6% for the three months ended March 30, 2013, from 12.0% for the comparable period in 2012.

The amount outstanding on the credit facility was $20.2 million at March 30, 2013, $26.8 million at December 29, 2012, and $19.4 million at May 13, 2013.  As previously announced, the Company entered into the Second Amendment to Revolving Credit and Security Agreement, Waiver and Forbearance Extension on December 18, 2012. Under the terms of the Amendment, the maximum revolving amount was reduced from $35.0 million beginning on February 1, 2013 as follows: $31.5 million for the period from February 1, 2013 through and including April 29, 2013, and $26.5 million for the period from April 30, 2013 through and including the last day of the term, which is presently May 29, 2015.

The Company is currently in default under the terms of the credit facility with its senior lender and the Second Amendment to the Forbearance Agreement expired on April 30, 2013. However, the lender has not taken any action with respect to the Company's defaults and the Company continues to actively discuss with the lender the terms under which such defaults may be cured or waived.

By following the link you can get the table illustrates the composition of the Company's revenue and profitability for the three months ended March 30, 2013 and March 31, 2012, respectively:

http://www.englobal.com/profiles/investor/ResLibraryView.asp?ResLibraryID=62684&BzID=702&Nav=0&LangID=1&s=0&Category=64

ENGlobal Corporation: Fourth Quarter and Fiscal Year 2012 Results

HOUSTON, April 15, 2013 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of energy-related engineering and automation services, today announced its financial results for the fourth quarter and fiscal year ended December 29, 2012.

Fiscal Year 2012

Revenues for the year ended December 29, 2012 were $227.9 million, a decrease of approximately 4% from the $237.6 million posted for the year ended December 31, 2011. Excluding certain non-cash charges, such as the impairment of goodwill and the write-off of a deferred tax asset, ENGlobal reported a net loss from continuing operations of $8.7 million, or $(0.32) per diluted share for fiscal year 2012, compared to a net loss of $4.4 million from continuing operations, or $(0.16) per diluted share for fiscal year 2011.

Fourth Quarter 2012

Revenues in the fourth quarter of 2012 were approximately $52.1 million, a decrease of 30% from $74.6 million from the prior year period. ENGlobal reported a net loss of $2.5 million from continuing operations, or $(0.09) per diluted share, for the quarter ended December 29, 2012, compared to a net loss of $2.6 million, or $(0.10) per diluted share for the quarter ended December 31, 2011.

Management's Assessment

William A. Coskey, P.E., ENGlobal's Chairman and Chief Executive Officer, stated: "ENGlobal's turnaround plan essentially began in the fourth quarter of last year. While the Company experienced a difficult 2012 and continues to face a number of challenges, we are cautiously optimistic about our operations resulting from measures that were implemented in the last six months. During this time, the Company sold two non-strategic businesses, discontinued another, and we are now focused on our core operational segments."

Mark A. Hess, ENGlobal's Chief Financial Officer, added: "We are also operating more efficiently and seeing significant margin improvement from our continuing operations. The latter of which is primarily due to ENGlobal's ongoing efforts to significantly reduce overruns on its projects and to improve commercial terms on its contracts. We remain dedicated to reducing our dependence on our working capital credit facility. As a result of the implementation of the above initiatives and the sale of our Field Solutions divisions, we have reduced the level of borrowings under our working capital credit facility to $26.8 million at the end of 2012 and we are currently borrowing significantly below that level."

Mr. Coskey concluded, "As a result of our combined efforts, steady financial improvement, and increasing backlog, our management team can be proud to have outperformed the Company's financial turnaround plan for each month since its inception."

The following table illustrates the composition of the Company's revenue for the fiscal years ended December 29, 2012 and December 31, 2011: Click Here

ENGlobal Corporation: 8K - Notice of Delisting

http://www.sec.gov/Archives/edgar/data/933738/000117184313001282/f8k_040813.htm

Item 3.01        

Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On April 4, 2013, ENGlobal Corporation (the “Company”) received a notification letter (the “Notice”) from The NASDAQ Stock Market LLC’s Listing Qualifications Department (“NASDAQ”) advising the Company that it had not regained compliance with Listing Rule 5450(a)(1), the continued listing requirement to maintain the $1.00 per share minimum bid price, and that, accordingly, its common stock is now subject to delisting from The NASDAQ Global Market.

In accordance with Listing Rule 5810(c)(3)(A), the Company may be eligible for a second 180 calendar day grace period if it applies to transfer its common stock to The NASDAQ Capital Market by April 11, 2013.  To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The NASDAQ Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary.  The Notice also states that the Company may request an appeal of the determination to delist via a hearing.

Unless the Company has submitted an application to transfer its common stock to The NASDAQ Capital Market or requests an appeal of the determination to delist the Company’s common stock, the Company’s common stock will be scheduled for delisting at the opening of business on April 15, 2013, and a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company’s securities from listing and registration on The NASDAQ Stock Market. If the Company files the hearing request before 4:00 p.m. Eastern Time on April 11, 2013, the suspension of the Company’s common stock and the filing of the Form 25-NSE will be stayed pending a Listing Qualification Panel’s decision.

The Company will consider available options to resolve the noncompliance with the minimum bid price requirement. In the meantime, the Company intends to apply to have its listing transferred to The NASDAQ Capital Market by April 11, 2013.  No other determination regarding the Company’s response has been made at this time.  There can be no assurance that the Company will be able to regain compliance with the minimum bid price requirement or will otherwise be in compliance with other NASDAQ listing criteria.

ENGlobal Corporation: One Year Later

Rev. 1.1

It was just a year ago on 1 April I revived and renamed the Engineering Blog. A few of you guessed that the date renewed on was no coincidence. Let’s examine where has ENGlobal gone in the last year? I thought the then presiding CEO was ineffective. Despite the long time it took for others to see the problem the CEO “resigned” and his fruitless management finally ended, albeit with severe damage. Just look at the financial results of the last year Q4 2012 – (.15), Q1 2013 – (.01), Q2 2013 – (.37), & Q3 2013 – (.83). It looks like some pretty nasty situations were uncovered after he left and had to be accounted for.

What will the financial results be in Q4 & FY 2013? I do not think it will be good news. Notice that this report did not come out in March as usual before last year. You may recall last year was delayed also. This FY report is delayed and to the extent that a NT 10-K had to be filed. ENG usually delays when the news is bad and/or when news can be bundled for a better street reaction.

NT 10-K

From the filing: “The Registrant has limited staffing and extremely limited resources. Accordingly, the Company will be unable to file its Annual Report on Form 10-K for the year ended December 29, 2012 within the prescribed period. We believe that the subject annual report will be available for
filing on or before Monday, April 15, 2013.” Does this sound good to you?

http://www.sec.gov/Archives/edgar/data/933738/000117184313001182/nt10k_032813.htm

There is more bad news within. Look at note (3) question: “Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof? ☒ Yes ☐ No”
And, then the Explanation:  The Registrant’s results of operations for the year ended December 29, 2012 will differ materially from the same period in 2011.  For fiscal year 2012, the Registrant expects to report a net loss from continuing operations of $30.1 million and loss per share from continuing operations of $1.13 compared to net loss from continuing operations of $4.4 million and loss per share from continuing operations of $0.16 in fiscal year 2011. In addition, due to the Registrant’s losses from operations and defaults under its debt covenants, the Registrant’s auditors have informed us that their opinion will include a going concern qualification.

I added the underlining but the bad news is clear. A FY 2012 loss from continuing operations of $1.13 per share and a decrease of .97 cents over last year’s loss is phenomenal. This is the severe damage I spoke of earlier. Please note that this is comparing Continuing Operations. ENGlobal’s loss form continuing operations was (.16) in FY 2011, however, their Net Loss was (.27)! In comparing apples to apples the Net Loss for FY 2012 is sure to be much higher than the $1.13 per share because the YTD Net loss from discontinued operations at the end of 3Q 2012 was already (.18).  Even without additional losses in the fourth quarter from discontinued operations they are looking at a Net loss of $1.31 which would exceed FY 2011 by a whopping $1.04 per share.

I would have thought ENG would be sold or nearly so by now. The length of time with no announcement as such or even other such indicators is worrisome. The auditors are not rendering an opinion for nothing. It would be a moot point in the event of a sale. So in reality with what we know, with no sale in sight; what do you think the ENGlobal’s auditor’s opinion as the company being a “going concern” will be?

Continuation of an entity as a “going concern” is assumed in financial reporting in the absence of significant information to the contrary. Ordinarily, information that significantly contradicts the “going concern” assumption relates to the entity's inability to continue to meet its obligations as they become due without substantial disposition of assets outside the ordinary course of business, restructuring of debt, externally forced revisions of its operations, or similar actions.  By including a “going concern” qualification in their opinion, ENGlobal’s external auditors may be forcing disclosures about continuity that might not be otherwise forthcoming from management.  If you are interested in more information on this subject just “Google” the subject “concerning auditors going concern qualification”.

Additionally, the NASDAQ should be delisting ENGlobal soon by the stock not recovering to over $1 for the required amount of time. Moreover, the Credit Facility is on a multiple extension, expiring April 30 – lending money to a company with consistent losses…doesn’t take a genius to figure the rest out.

If you look at all the recent SEC filings you will see some SC 13G/As and a SC 13G filed. Statement and amended statements of ownership. Given the number of shared amended and owned there exists the possibility of taking the company private. That would mean an end with a low recovery for investors and a smaller company that can still provide some jobs after the cuts. If that possibility happens the comapny still needs to be run competently.

You may see the dialog here change as more information becomes available. ENG has discontinued many operations and sold of several business units. Revenue will decrease and I hope they can balance to something profitable. Good luck to everyone.

ENGlobal Corporation: ENGlobal Provides Operational Update

 

 

Houston, Texas, Feb. 27, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation, a leading provider of energy-related engineering and automation services, today provided an operational update on a range of project scopes that were recently awarded to its Automation Segment.

· An automated pipe handling equipment company has awarded ENGlobal projects to engineer, integrate, and test a number of automated driller's cabins, which include consolidating drilling controls, automated pipe handling controls, computer hardware and data processing systems.

· ENGlobal will provide design and integration services for several analyzer shelters and remote instrument enclosure (RIE) buildings for a large engineering and construction firm, to be shipped to a variety of end users. The Company's scope also includes engineering, procurement, and testing of the analyzer shelters and RIEs.

· A midstream energy master limited partnership (MLP) has selected ENGlobal as its automation systems integration contractor. Specifically, the Company expects to provide procurement, fabrication, and testing of industrial shelters, programmable logical controller (PLC) systems, railcar and truck loading / unloading facilities, and satellite transmitting and receiving stations.

"We are pleased to receive these project awards from both new and existing clients," said William A. Coskey, P.E., ENGlobal's President and Chief Executive Officer. "ENGlobal is committed to being totally responsive to our valued clients - both by providing quality services as well as supporting them in a range of new business opportunities, as illustrated by these recent awards."

ENGlobal Awarded Reconstruction Project From Huntsman

HOUSTON, Jan. 31, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ: ENG), a leading provider of energy-related engineering and automation services, announced today that it has been awarded a project from Huntsman Performance Products ("Huntsman"), a division of Huntsman Corporation (NYSE: HUN), to provide engineering and project management services at Huntsman's manufacturing plant in Port Neches, Texas.

In April 2012, Huntsman announced its intent to add 250 million pounds per year of EO capacity to its existing one billion pounds annual capacity at the same plant.  ENGlobal expects to perform the engineering, design and project management of the reconstruction of an Ethylene Oxide (EO) Unit.
The Company will begin work on the project immediately with engineering scheduled to be completed in the second quarter of 2013.

Monteith, President of Huntsman Performance Products, said, "The expansion of our ethylene oxide capacity enables Huntsman to leverage the favorable North American ethane cost position, which will benefit our intermediate chemicals and has an attractive projected return on investment.  We are excited to join with ENGlobal to work on this expansion."

"We are pleased to receive this award from Huntsman, who is a long standing and valued client," said William A. Coskey, P.E., ENGlobal's President and Chief Executive Officer. "The award clearly affirms our industry expertise and capability in delivering a safe, quality project in all respects.  We are deeply committed to addressing our clients' unique project needs and production objectives."

Spring and Summer News and Events 2013

Rev 4.0

Below is an interesting story to read when you have some time to think and appreciate a sense of honor that goes beyond most codes of mankind. You will find that it is more than kindness by the results - a code of life. Follow the two links within the article for the real bonus.

 http://www.cnn.com/2013/03/09/living/higher-call-military-chivalry/index.html?hpt=hp_c1

As an addendum to the earlier post  San Antonio Theater Shooting Gun Control and Media many other more practical solutions are being utilized all over the world.


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 "So with all the kindness I can muster, I give this one piece of advice to the next pop star who is asked to sing the national anthem at a sporting event: save the vocal gymnastics and the physical gyrations for your concerts. Just sing this song the way you were taught to sing it in kindergarten -- straight up, no styling. Sing it with the constant awareness that there are soldiers, sailors, airmen and marines watching you from bases and outposts all over the world. Don't make them cringe with your self-centered ego gratification. Sing it as if you are standing before a row of 86-year-old WWII vets wearing their Purple Hearts, Silver Stars and flag pins on their cardigans and you want them to be proud of you for honoring them and the country they love -- not because you want them to think you are a superstar musician. They could see that from your costume, makeup and your entourage. Sing "The Star Spangled Banner" with the courtesy and humility that tells the audience that it is about America , not you."

Unknown Author

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To help the Lovelady family please see end of this link, thank you:

http://www.kfdm.com/shared/news/top-stories/stories/kfdm_vid_3456.shtml


This is one of the most difficult situations in life we now have to face. The world has changed in our lifetimes.  Trying to cover a situation that strikes home from the other side of the world is difficult with sketchy news. But not nearly as difficult as what family and friends are going through.  That is where the thoughts; prayers and efforts should go now in support. God bless the families affected wherever they are – God knows who they are.

In the long-term we need a strong government and military to help prevent and respond to suppress such behavior in the world. It is our responsibility as citizens to voice concerns and control government to meet those goals. To do this we need to remain strong and empowered as citizens.

We are Americans, we are Free.

Burrow Global Acquires/Merges Industrial Engineering Management

Burrow Global, LLC, a Multi-services Provider to Industrial Clients Worldwide, Acquires/Merges Industrial Engineering Management, Inc. hereafter referred to as (IEM)

Burrow strengthens upstream and midstream engineering services and adds full service Baton Rouge and Nassau Bay offices 

HOUSTON, TEXAS (January 3, 2013) Burrow Global, LLC (Burrow) has successfully concluded the friendly acquisition/merger of Baton Rouge, Louisiana and Nassau Bay, Texas based engineering firm, “Industrial Engineering Management, Inc. (IEM)”. A highly respected, multi-discipline firm that started operations in mid-2009, IEM specializes in process/conceptual design and FEL package preparation, plant automation, detailed engineering/design, and construction management. IEM, which currently employs over 90 full time technical employees, services primarily the upstream and midstream oil and gas markets and secondarily the refining and petrochemical industries.
This marriage adds depth of expertise and resources in a resource limited market to the upstream/midstream segments while expanding Burrow Global geographically through IEM's full services offices in Baton Rouge, Louisiana and Nassau Bay, Texas.

Under the terms, Burrow acquired assets and stock of IEM and IEM shareholders became shareholders of Burrow. The transaction recently finalized was effective December 31, 2012 with IEM which has been rebranded as “Industrial Engineering Management, LLC a Burrow Global Company” becoming a wholly owned subsidiary of Burrow Global, LLC. Burrow is a rapidly growing engineering, construction and industrial services company employing 960 people and servicing customers across the globe. With this acquisition, the company now operates from twelve domestic offices Beaumont, Houston, Deer Park, Pasadena, Nassau Bay, Port Arthur, Mont Belvieu, Crystal City, Henderson, and Yoakum Texas, Tulsa, Oklahoma, and Baton Rouge, Louisiana plus two fabrication facilities in Crystal City and Henderson, Texas. Burrow is a global player in the provision of engineering and construction services for industrial clients and specializes in process automation, industrial buildings, plant commissioning, start-up, operations and turnaround management.

“IEM has complementary strengths in process engineering and plant automation, two areas that are synergistic with Burrow and will substantially benefit our customers”, said Mike Burrow, P.E., CEO and Board Chairman of Burrow Global, LLC. “With this acquisition, we can now offer all our industrial clients substantially improved capabilities in front end engineering and plant automation covering most industrial process facilities; especially in the development and design of upstream and midstream facilities. The Baton Rouge office will provide the manpower and home office infrastructure needed to facilitate re-establishing Burrow’s presence in that familiar locale. We will use IEM’s strong, established, local foundation to grow our downstream service offering in Louisiana,” said Burrow.

“The depth of expertise in engineering, procurement, and construction already established by the Burrow companies is well known and I believe we will complement their capabilities, especially in the areas of upstream and midstream industrial facilities,” said Craig Borel, P. E., president and CEO of IEM. “Mike Burrow and I worked together for many years in a Baton Rouge engineering company that was acquired by a former Burrow Managed Company in the 1990’s. Our companies have also recently worked together on several midstream projects to the benefit of our clients. We share common values and goals and we know each other well, so it is a good fit. With Burrow’s size, we will be able to offer considerably more resources to our established clients as well as expand our global opportunities in the future.”

About Industrial Engineering Management, LLC a Burrow Global Company:
Industrial Engineering Management, LLC, is a diversified multi-disciplined, consulting engineering firm, established in 2009. IEM was owned, by Craig Borel, P. E, Samantha Wilds, Jennifer Crawford and Barry Boudreaux and operated as a Louisiana Corporation with offices in Baton Rouge, Louisiana and Nassau Bay, Texas. Industrial Engineering Management, LLC, has worked across the United States and abroad. IEM’s services include the full range of engineering, design, and procurement and construction management. IEM designs are appreciated by clients because of their simplistic approach and ease of maintenance. IEM, LLC started in 2009 with only 8 employees and through hard work, quality services and repeat business has grown to over 90 employees as of 2012 year end.

About Burrow Global, LLC:
Burrow Global, LLC is a full service engineering, procurement, construction and facility services firm with specialties in process design and plant automation, turnaround management, and plant commissioning and start-ups. Founded in November of 2009 by CEO and Board Chairman Michael L. Burrow, P.E., Burrow Global is a privately held firm that has exhibited substantial organic growth since 2010 by using strategic acquisitions to position the company to address the needs of its valued clients. With a clear vision for continuous performance improvement and a global priority for safety in execution, Burrow Global Companies have grown to include twelve domestic offices, two shops and almost 1000 employees. The group of companies expects to exceed $150 million in revenues for 2012 and with this acquisition has a revenue run rate exceeding $200 million annually.

http://www.burrowglobal.com

ENGlobal Corporation: Closes the Midstream Deal

ENGlobal Completes Divestiture of Midstream Inspection Division

Houston, TX, Jan. 3, 2013 (GLOBE NEWSWIRE) -- ENGlobal Corporation (NASDAQ: ENG), a leading provider of energy-related engineering and automation services, announced today that it has closed the previously announced agreement to divest its Midstream Inspection division to Furmanite America, Inc. ("FAI") a subsidiary of Furmanite Corporation.  As announced in December 2012, the total value of the transaction to ENGlobal was approximately $6.5 million, consisting of cash at closing, retained working capital, and a promissory note issued with a parent company guarantee.
ENGlobal intends to use the net proceeds from this transaction to reduce outstanding debt.  The closing of this transaction completes ENGlobal's previously announced intent to divest its Field Solutions segment, which included both its Land/Right of Way and Midstream Inspection divisions, as a means of reducing outstanding bank indebtedness.

Opinion: Kind of a repeat but glad they got it closed.